Paul Scanlon's blog post provides a comprehensive guide on using the new Gatsby Image Plugin with MDX for embedding images in a Gatsby project. The article explains how MDX frontmatter can store references to local and remote images, which can then be rendered using the <GatsbyImage /> component from gatsby-plugin-image. While the plugin works seamlessly in JSX, challenges arise when rendering images from MDX due to differences in how image data is processed and queried. To address this, the post outlines a method involving gatsby-node.js to process frontmatter fields and use GraphQL type inference to correctly handle image URLs as File types, enabling the use of remote images with Gatsby's data layer. This approach ensures the maintenance of fast site speeds and image optimization, complete with examples and a demo site for practical reference.